Rethinking total rewards during uncertain times - Rewards trends in Asia Pacific - Mercer
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Rewards trends in Asia Pacific Rethinking total rewards during uncertain times 4 November 2020 welcome to brighter
Today’s speakers
Puneet Swani, Senior Partner Godelieve Van Dooren, Partner
Career Business Leader Regional Industries & Products Leader
International Region Asia Pacific
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 2
Agenda
1. Economic outlook: Economic impact of
the pandemic
2. Talent and workforce insights: Impact of
coronavirus on talent management practices
3. Compensation trends: Implications of
COVID-19 crisis on employee compensation
4. Benefits trends: Implications of COVID-19
crisis on benefits programs
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 3
Polling question #1 results
Q: What are your top priorities for 2021 Total Rewards?
You may select more than one option
a) 55.99 a) Manage and reduce costs 55.99%
b) Deliver competitive compensation and benefits 55.27%
b) 55.27
c) Redesign incentive plans to align with business objectives 43.87%
c) 43.87
d) Improve digital employee experience 40.4%
d) 40.4 e) Deliver more targeted value to different employee segments 26.26%
e) 26.26 f) Skill-based pay 17.89%
f) 17.89
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 4
Economic Outlook The economic impact of the pandemic
COVID-19 outbreak is lasting longer than expected
Economic activity has contracted significantly on a global scale
How long will the current GDP real growth %
coronavirus pandemic
last?
5.4
5.1
5.1
4.5
4.2
4.0
3.6
2.9
2.9
No one knows exactly, it is very hard to predict
2.3
1.9
1.3
In Mercer’s previous regional webinar held in
April, approx. 50% of the attendees expected
the crisis to end by Q3 2020
-1.2
-3.7
-4.9
“Spread of infectious
-7.9
diseases” has rocketed
up the rankings to become Global US Europe APAC
one of the top concerns for businesses,
2018 2019 2020f 2021f
according to the World Economic Forum’s
2020 Executive Opinion Survey
Source: IMA Asia , APAC Executive Brief, Sept 2020
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Big variations in growth for countries in Asia
Uncertainty remains but increasingly optimistic outlook for future
GDP real growth %
7.1
7.0
6.8
6.7
6.6
6.3
6.3
6.3
6.1
6.0
5.7
5.7
5.3
5.2
5.0
5.0
5.0
4.9
4.8
4.3
4.1
3.6
3.5
3.4
3.2
3.2
2.9
2.9
2.8
2.8
2.7
2.7
2.7
2.5
2.4
2.3
2.2
2.2
2.0
1.8
1.3
0.7
0.7
0.3
-1.1
-1.2
-1.3
-3.5
-4.9
-5.5
-6.3
-6.6
-6.8
-7.3
-7.6
-8.8
Australia China Hong Kong India Indonesia Japan Malaysia New Philippines Singapore South Taiwan Thailand Vietnam
Zealand Korea
2018 2019 2020f 2021f
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Source: IMA Asia, APAC Executive Brief, Sept 2020
Coronavirus pandemic has created disruptions in the world of work
Unemployment rate across the region remains high
Unemployment rate, %
According to the World Economic
15.3 Forum’s 2020 Executive Opinion Survey,
15.0
unemployment and underemployment
tops CEOs’ worries for doing business
12.0 around the world
12.0
9.0
8.0
7.2
7.0
5.8
8.0 5.5
6.6 7.2 5.3 4.8 4.5 5.0 5.0 5.0
5.6 3.5 3.4
4.3 4.0 4.3 2.5
6.0 5.1 5.5 5.2 2.9 5.2 3.3 3.1 3.7 3.8 2.4 2.3 1.0
India Philippines Indonesia Australia Hong China Malaysia Vietnam Taiwan South Japan Singapore Thailand
Kong Korea
2019 2020f 2021f
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Source: IMA Asia, Asia Forecast Data, Q3 2020
Adapting quickly is vital. Businesses will need to tread a delicate
balance between economics and employee well-being.
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Talent and workforce insights Impact of coronavirus on talent management practices
1 in 2 organizations in APAC have changed their hiring intentions
for 2020 as a result of the COVID-19 outbreak
Hiring intention for 2020, if it has changed as Scope of hiring freeze introduced as a result
a result of COVID-19 outbreak of the current situation
1% 1% Across all roles / functions
21% Hiring freeze 22%
33% Across all roles / functions except
Hiring less than planned replacement hires
Across all roles / functions except
Hiring more than planned
critical roles
Across all roles / functions except
7% replacement hires and critical roles
78% 37%
Other
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Source: Mercer 2020 TRS Special EditionHeadcount numbers are being managed cautiously
Majority of the companies are adopting a wait and watch approach
2020 actions/plans regarding headcount in response to COVID-19 outbreak
7% 3% 7% 4% 6% 7% 4% 5% 4%
8% 9% 5% 9%
6% 7%
18% 7% 12% 9% 9%
11% 8% 7% 7%
10% 12% 18%
15% 10% 12% 15%
12% 15%
16% 20%
16%
77% 75% 78% 74%
72% 73% 74% 73% 70%
67% 64% 65%
CN HK IN ID JP MY PH SG KR TW TH VN
No change in headcount Headcount decrease
Not decided Headcount increase
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 12
Source: Mercer 2020 TRS Special Edition
India results are preliminary, final numbers may be differentVoluntary attrition rates are trending down while involuntary
attrition rates are on a rise
Voluntary turnover for H1 2019 and H1 2020 2019 H1 Voluntary Turnover
2020 H1 Voluntary Turnover
7.6%
5.6%
6.5%
5.3%
7.9%
6.2%
8.3%
6.3%
3.5%
3.4%
4.2%
3.6%
6.5%
5.9%
6.2%
5.1%
5.6%
5.0%
4.9%
5.1%
5.2%
5.8%
5.8%
5.2%
8.0%
7.3%
AU CN HK IN ID JP MY PH SG KR TW TH VN
Involuntary turnover for 2019 and 2020 2019 Involuntary Turnover
2020f Involuntary Turnover
15.1%
10.8%
11.2%
15.1%
13.5%
14.4%
5.9%
7.8%
5.1%
7.2%
3.4%
5.0%
4.8%
4.0%
1.9%
3.6%
4.0%
6.5%
3.5%
2.8%
7.3%
2.9%
9.1%
3.2%
7.7%
2.5%
AU CN HK IN ID JP MY PH SG KR TW TH VN
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 13
Source: Mercer 2020 TRS Special Edition, 2019/2020 TRS; Data for China is for Shanghai; India results are preliminary, final
numbers may be different; India 2020 voluntary turnover from 2020 Mercer Workforce Metrics Around the World reportYet some companies found it difficult to hire and retain critical
talent
Job families most difficult to hire/retain in APAC during the pandemic
14% of the organizations in APAC had Difficult to hire Difficult to retain
difficulties in hiring employees in a certain Sales, Marketing &
38% 31%
job family during the pandemic; while Product Management
16% Engineering & Science 28%
10% of the organizations in APAC had 9% IT, Telecom & Internet 10%
difficulties in retaining employees in a
certain job family during the pandemic 8% Finance 6%
Production & Skilled
5% 7%
Trades
Some organizations are offering “premiums” of one form or
another to attract critical talent
of the organizations in APAC granted or are
considering granting special COVID-19 related
12% bonuses for employees who are critical to meet or
maintain the organization’s current business goals
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Source: Mercer 2020 TRS Special EditionFor longer-term success, balance cost management with employee
experience
As businesses grapple with the
impacts of the COVID-19 pandemic,
cost deferrals and reductions
measures to ensure business
continuity is an important concern
and focus for employers
With considerable economic
uncertainty ahead, the need for
cost management is here for the
long-term so focusing on
employee experience along the
way will be vital for recovery
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 15Compensation trends Implications of COVID-19 crisis on employee compensation
Polling question #2 results
Q: What is your salary increase forecast for 2021?
a) Higher than 2020 (between 1-2% increase) 7.69%
a) 7.69
b) Same as 2020 20.48%
b) 20.48
c) Lower than 2020 (between 1-2%) 24.18%
c) 24.18 d) Lower than 2020 (More than 2% decrease) 6.99%
d) 6.99 e) Salary freeze 16.88%
f) Not sure yet 23.78%
e) 16.88
f) 23.78
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 17Implication of COVID-19 pandemic on salary increase budget
% organizations where salary increase budget was affected for 2020 and 2021
1%
2%
23% 2%
20% 3%
3%
3%
3%
3%
4%
4%
20% 4%
22% 4%
4%
17% 5%
5%
23%
28%
29%
29%
30%
30%
30%
24%
23%
25%
31%
23%
32%
32%
29%
27%
22%
34%
27%
33%
35%
29%
36%
14%
16%
12%
14%
12%
11%
15%
15%
15%
16%
12%
15%
18%
13%
60%
55%
57%
59%
60%
57%
57%
55%
53%
59%
50%
58%
53%
57%
63%
63%
62%
61%
61%
61%
58%
58%
58%
57%
57%
55%
54%
52%
16%
15%
14%
14%
13%
13%
13%
13%
12%
12%
12%
10%
10%
9%
20 21
AU 20 21
CN 20 21
HK 20 21
IN 20
ID 21 20 21
JP 20 21
MY 20 21
NZ 20 21
PH 20 21
SG 20 21
KR 20 21
TW 20 21
TH 20 21
VN
AU CN HK IN ID JP MY NZ PH SG KR TW TH VN
Not sure No change Salary increase budget decreased Salary increase budget increased
6 in 10 organizations in APAC are uncertain if COVID-19 pandemic will affect their 2021 salary increase budget
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 18
Source: Mercer 2020 SMS COVID-19 Report, E3
Data for China is for ShanghaiImplication of COVID-19 pandemic on salary freezes for employees
% organizations implementing salary freezes for employees in 2020 and 2021
10%
10%
10%
8%
11%
11%
11%
11%
9%
12%
12%
13%
13%
14%
58%
59%
64%
64%
65%
65%
67%
67%
69%
69%
72%
73%
74%
76%
64%
65%
65%
65%
67%
69%
65%
65%
75%
68%
71%
72%
67%
72%
25%
26%
24%
23%
22%
23%
22%
19%
25%
23%
10% 17%
11% 15%
18%
5% 20%
27%
25%
24%
24%
23%
23%
22%
20%
20%
19%
18%
17%
17%
17%
16%
15%
13%
13%
13%
12%
12%
11%
9%
8%
8%
20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21
AU CN HK IN ID JP MY NZ PH SG KR TW TH VN
AU CN HK IN ID JP MY NZ PH SG KR TW TH VN
No plans to implement Not sure, monitoring the situation Yes, implementing/considering a salary freeze for all/some employees
7 in 10 organizations in APAC are uncertain if they will implement salary freezes for any employees in 2021
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 19
Source: Mercer 2020 SMS COVID-19 Report, E3
Data for China is for ShanghaiImplication of the pandemic on salary reduction for employees
% organizations implementing salary reduction for employees in 2020 and 2021
1%
3%
3%
3%
3%
4%
4%
4%
4%
4%
4%
4%
4%
5%
19%
22%
25%
25%
25%
26%
27%
28%
29%
29%
30%
31%
32%
34%
48%
44%
45%
45%
47%
49%
46%
48%
47%
48%
49%
48%
50%
52%
29%
26%
38%
27%
30%
25%
24%
29%
23%
27%
32%
30%
35%
27%
53%
52%
51%
51%
50%
49%
49%
49%
49%
49%
49%
49%
48%
47%
47%
47%
47%
46%
46%
45%
44%
44%
44%
43%
42%
39%
38%
35%
20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21
AU CN HK IN ID JP MY NZ PH SG KR TW TH VN
AU CN HK IN ID JP MY NZ PH SG KR TW TH VN
No Not sure, monitoring the situation Yes, implementing/considering a salary reduction for all/some employees
of the organizations say that the reductions of the organizations adjusted the 2020 salary
85% implemented due to COVID-19 are temporary for
all or most employees
22% increases after communication to employees but
before / after implementation
1 in 2 organizations in APAC are uncertain if they will implement salary reductions for any employees in 2021
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 20
Source: Mercer 2020 SMS COVID-19 Report, E3
Data for China is for ShanghaiCompanies are adjusting their pay policy in view of the increased
remote working
Localization of pay for employees 1 in 3 companies in APAC who offered significant
who work remotely subsidized onsite amenities or allowances of
significant value plan to re-balance the total rewards
offering or shift to financial reimbursements or
28%
allowance for employees working flexibly
46% % companies in APAC providing financial support to
employees working remotely
Yes, implemented pre-pandemic, no changes
10% 10%
to policy
Yes, implemented pre-pandemic, making
16%
16% updates to policy as a result of the pandemic
Pay at the market rate of the office location Yes, recently implemented as a result of the
25%
Pay at the market rate of the home location pandemic
Pay at a national/country market rate
No 50%
Not applicable/Other
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 21
Source: Mercer Global COVID-19 Survey #6, APAC resultsImplications on employee compensation
2021 merit salary increase
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Hong New South
Australia China India Indonesia Japan Malaysia Philippines Singapore Taiwan Thailand Vietnam
Kong Zealand Korea
2019 3.0% 6.0% 4.0% 9.6% 7.9% 2.0% 5.0% 2.8% 5.5% 3.9% 4.4% 3.8% 5.0% 8.5%
2020 Actual/Budgeted 2.8% 5.9% 3.6% 9.0% 6.9% 2.2% 4.7% 2.8% 5.5% 3.5% 4.2% 3.5% 4.6% 7.7%
2021 Forecast 2.6% 5.7% 3.5% 8.6% 6.7% 2.1% 4.4% 2.6% 5.4% 3.4% 3.9% 3.4% 4.3% 7.4%
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 22
* Data shown is average merit increase excluding zeroes Source: Mercer 2020 E3 SMS survey, 2020 Global Compensation Planning report;
Data for China is for ShanghaiVariable bonus
Most companies made no changes to payout being made this year
90% of the organizations paid out variable bonus to employees for the performance year 2019 at planned time
For those who did not, 71% cancelled the bonus payout, 20% delayed it and 9% spread the payout over a period of time
Only 1 in 10 organizations decreased the variable bonus target compared to the original value
Forecasted variable bonus budget for 2020 performance year compared to 2019 actual payout
18% 17% 18% 20%
24% 22% 25% 25% 23% 25%
28% 28%
50%
55% 51% 50% 43%
49% 54% 45% 49% 39%
57% 50%
21% 32% 22% 27% 27% 24% 20% 28% 29%
21% 14%
15%
6% 6% 4% 4% 8% 4% 6% 9% 5%
2% 3% 3%
CN HK IN ID JP MY PH SG KR TW TH VN
More than the actual payout for 2019 Less than the actual payout for 2019
Too early to tell No change
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 23
Source: Mercer 2020 TRS Special Edition
India results are preliminary, final numbers may be differentVariable bonus
But companies are reviewing their variable bonus policy for future
23% of the organizations in APAC are considering adjusting variable bonus
policy for the 2020 performance year
Elements that organizations are looking to adjust in the
variable bonus policy for the 2020 performance year
Redefining bonus performance factors 37%
Percentage of target bonus 33%
Percentage of maximum bonus 18%
Variable bonus rate 17%
Eligibility 13%
Remuneration structure remodeling 5%
Frequency of bonus payouts 4%
Bonus deferral 3%
Other 19%
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 24
Source: Mercer 2020 TRS Special EditionSales incentives plans are also being revisited
of the organization adjusted or are considering adjusting their
19%
sales incentive policy because of the COVID-19 pandemic
For 37% of the organizations, all departments were affected by the
sales policy adjustment
Elements that organizations are looking to adjust in their
sales incentive policy because of the COVID-19 pandemic
41%
28%
25% 24% 25%
12%
9% 9%
Sales target Threshold Sales Offer Maximum Sales Commission Other
incentives guaranteed sales incentive rate
factors pay-outs achievement target rate
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 25
Source: Mercer 2020 TRS Special EditionLong term incentives
Most organizations are not making changes
% organization considering implementing changes for
% organizations implementing 2020 grants not yet made
changes to its LTI policy in
CN 2% 59% 39%
response to the COVID-19 outbreak
HK 2% 55% 43%
2%
IN 2% 60% 38%
ID 2% 57% 41%
31% JP 1% 67% 32%
MY 2% 62% 37%
PH 4% 59% 37%
SG 2% 71% 27%
67%
KR 2% 72% 26%
TW 0% 72% 28%
TH 3% 66% 31%
Yes No Not decided yet VN 2% 64% 34%
Yes No Not decided yet
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 26
Source: Mercer 2020 TRS Special Edition
India results are preliminary, final numbers may be differentThere is still significant uncertainty for 2021
Though outlook is more positive now compared to earlier this year
Actions you can take:
Keep a pulse on the market to ensure competitiveness
The market is still moving, and disruption will drive new
patterns as we move into 2021
Streamline merit planning and other compensation
administration activities to stay agile
Decisions are likely to be delayed or change
Make the most of your budget
Organizations with smaller budgets are increasing
differentiation (performance, skills and competitiveness) and
limiting eligible populations
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 27Navigating the Pandemic response lifecycle
Implications on Total Rewards
Peak
Recurring Transmission
Cyclical post-peak and resurgence
respond return reinvent
Initial onset with exponential case growth Period of volatility when reopening, Systematic, scaled and sophisticated tools for testing and
and business interruption as testing / monitoring is perfected monitoring, enabling recovery and re-defined work practices
Phase 1: Cost containment strategies and workforce composition changes
Limited return to work
Pay protection begin to slowly recover and ease
Rewards
Impact
Phase 2: Mid- to long-term cost management
Focus on company performance that can be shared
Rewards cost containment implemented
Phase 3: Enhanced focus on rewarding critical skills; reformulated
Continued workforce composition changes
Workforce composition changes incentive plans
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 28Benefits trends Implications of COVID-19 crisis on benefits programs
Polling question #3 results
Q: What are some of the changes you have made to your benefits policies?
You may select more than one option.
a) Made changes to leave policies 36.4%
(e.g. entitlements, carry forward, encashment etc.)
a) 36.4
b) Introduced a monthly allowance to cover for remote 11.54%
working expenses
b) 11.54
c) Continued inclusion/provision of telemedicine and digital 31.59%
care for employees
c) 31.59
d) Enhanced policies for employee mental health and wellbeing 56.46%
(e.g. Promoting healthy work-life balance habits, enhanced
d) 56.46 flexibility around working hours, providing access to EAP,
wellbeing apps and online mental health resources etc.)
e) 27.61 e) Expanded the suite of benefits included in flexible 27.61%
benefits policy
(e.g. inclusion of WFH expenses incurred, vaccinations, IP/OP
f) 28.57
psychiatric and psychology coverage etc.)
f) No changes made to existing benefits policies 28.57%
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 30COVID-19 has challenged employer norms around flexible work
in numerous ways
Flexibility FROM WORK Flexibility AT WORK
Emergency leave, sick time, caregiving time, When, where, what, how and by whom work
vacation time, parental leave, sabbaticals gets done
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 31The flexible work experience so far Some components
impacting the current
environment will not sustain
Nearly half of employers have more than 75% of their workforce remote during the pandemic.3
post-pandemic
These employees have seen ups and downs…
WFH is great. I
can get more out
of my day! I feel more connected
to my manager than
before.
Zoom, zoom and
more zoom. When
do I do my real Is it just me or
work? are my days
getting longer?
• Extreme social isolation will
My back hurts from not be the norm
sitting at the kitchen I’m stressed and
table all day. anxious, and I • There will be a return to
need some help. social support systems
(e.g., schools, eldercare)
…And likewise employers have seen mixed results
• Employees will have the
70%
of leaders say
25% 10-16% 17%
increase in
15%
increase in
67% opportunity to flex between
remote and in-person
more recurring projected increase of employers have
performance is meetings – and in ergonomics manager outreach, employee’s seen increased collaboration
the same or better 8% less focus workers’ comp and +10% day length2 utilization of
with WFH1 time2 claims4 increase in behavioral health3
manager 1:1s2
1Iometricsand Global Workplace Analytics, May 2020
2Worklytics,
May 2020 Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 32
3Mercer COVID-19 pulse surveys
4Marsh Risk Consulting, June 2020Three critical questions to drive flexibility at scale
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 33Benefits programs in focus
Time loss policies
Carry Forward Leave Policies in APAC
China 88% 5 days
My employees have a substantial amount of
accrued but untaken annual leave. What can I do? Hong Kong 93% 5 days to be utilized by EOY
Indonesia 83% 6 days to be utilized by end of Q2
Encouraging your employees to consume their annual leave India 91% 18 days to be utilized by EOY
Korea 49% 5 days to be utilized by EOY
Allowing your employees to carry forward their untaken annual leave
Malaysia 92% 7 days to be utilized by EOY
Philippines 70% 10 days
Letting your employees encash their unutilized annual leave
Singapore 93% 7 days to be utilized by EOY
Forfeiting your employee’s annual leave Thailand 84% 5 days to be utilized by EOY
Taiwan 61% 9 days to be utilized by EOY
Vietnam 89% 5 days to be utilized by end of Q1
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 34
Source: Mercer BenefitsMonitorTM 2020 Q3 Survey Results, Asia PacificBenefits programs in focus
Flexible working arrangements
55% 13% 33%
66% 20% 14%
Considering all aspects of flexible
working:
76% 19% 5%
Flexibility around when work is done
54% 43% 4%
(e.g. flexible scheduling and compressed weeks)
62% 25% 13%
Flexibility around how work is done
62% 25% 13%
(e.g. technology considerations)
67% 29% 4% Flexibility around what work is done
(e.g. project-based activities and automation)
64% 24% 12%
Flexibility around who does the work
69% 17% 15% (e.g. contract and/or gig workers)
54% 22% 24%
69% 24% 7%
Organizations who have implemented or are considering to implement remote working arrangements
Organizations who already had a remote working arrangement in place Organizations with no remote working arrangements
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 35
Source: 2020 Mercer Total Remuneration Survey – Special Edition Results, Asia Pacific, data as of October, 2020
Source: Mercer Global Survey, How are companies flexing for the future and returning to the workplace, Asia Pacific, data as of August, 2020Benefits programs in focus
Expenses coverage for remote working expenses
50% 1 of employers in APAC provide their employees
who are working remotely with financial support
China
One-time subsidy
(in USD)
Monthly Bill
Subsidy (in USD)
$260 $20
Hong Kong $258 -
Internet Service & Utilities 43%
Indonesia $272 $14
Ergonomic Office Equipment 29%
Japan $247 -
Computer Equipment Korea $176 $60
23%
Malaysia $333 $17
Office Supplies 12%
Philippines $206 $30
Additional Technology &
Virtual Collaboration Tools 12% Singapore $250 $63
Thailand $250 $32
Source: Mercer Global Survey, How are companies flexing for the future and returning to the workplace,
Asia Pacific, data as of August, 2020
Taiwan $661 $17
* Based on currency exchange rate as of Oct 28, 2020
** All amounts provided are median values
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 36
Source: 2020 Mercer Total Remuneration Survey – Special Edition Results, Asia Pacific, data as of October 2020
Source: Mercer BenefitsMonitorTM 2020 Q3 Survey Results, Asia PacificBenefits programs in focus
Health
Top 3 Concerns of both Employers and Employees:
Annual Physical Exams Vaccinations Health Screenings
EMPLOYEES EMPLOYERS
More than 50% feel that the coverage of employee Only 40% currently cover supplementary health
health benefits is adequate, but there is potential to benefits, such as health screenings and vaccines
broaden the types of offerings
75% stated that COVID-19 has increased However, 55% of employers are interested in
awareness of risk of infectious diseases expanding their program to include additional
vaccinations
53% mentioned that they would use the COVID-19 58% of employers have stated that they are looking
vaccination as an opportunity to get other to maintain their healthcare budget with an increased
vaccinations focus on cost management and have plans to
leverage on technology
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 37
Source: External Employee Survey, Oliver Wyman Analysis & Perspectives
Source: External Employer Survey, Oliver Wyman Analysis & PerspectivesBenefits programs in focus
Mental wellness
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 38Examples of employer initiatives to manage through these
unprecedented times
Provision of additional family Funds for colleagues experiencing
and childcare benefits personal financial crisis
Extended work from home Complimentary COVID-19
and flexible working policies Special Coverage
for employees and eligible
dependents
Care packages sent to employees
Delivery service perks and
discounts for food and groceries
Virtual Social Group Activities
e.g. cooking challenges
Extension and Expansion
of leave policies
Measures to support Mental
Health of employees
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 39Employers need to prepare for success in an altered world
Now is the time to rethink and reevaluate
Enable informed decisions about
compensation and benefits
especially during today’s uncertain
times
Total rewards has always been a
critical element of business planning
Knowing how your total rewards
programs are positioned is essential to
weathering the current difficult times
and to be prepared to take advantage
of the coming recovery
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 40welcome to brighter
Q&A
Puneet Swani Godelieve Van Dooren
Career Business Leader, Regional Industries & Products Leader,
International Region Asia Pacific
Puneet.swani@mercer.com Godelieve.van.Dooren@mercer.com
Copyright © 2020 Mercer (Singapore) Pte. Ltd. All rights reserved. 42You can also read
